Jefferies initiates Jade Biosciences stock with Buy rating on IgAN treatment

Investing.com - Jefferies initiated coverage on Jade Biosciences (NASDAQ:JBIO), currently trading at $9.82 with a market cap of $317 million, with a Buy rating and a $16.00 price target on Monday. According to InvestingPro data, analysts’ targets range from $14 to $19.

The research firm cited positive prospects for JADE101, the company’s long-acting anti-APRIL treatment for IgA nephropathy (IgAN), a kidney disease.

Jefferies’ analysis suggests JADE101 can achieve dosing intervals of 8 to 12 weeks and may demonstrate efficacy comparable to povetacicept with potential upside in clinical remission rates.

The firm expects JADE101 to maintain a tolerable safety profile without increased serious infections and sees opportunity for disease-modifying treatment with longer dosing intervals for IgAN patients.

Jefferies models $915 million in risk-adjusted peak sales for JADE101 with a 30% probability of success, while noting Jade Biosciences has $255 million in cash and cash equivalents providing runway through 2027.

In other recent news, Jade Biosciences has made notable advancements, beginning with the appointment of Brad Dahms as the new Chief Financial Officer. Dahms brings a wealth of experience from his previous roles at biotechnology companies, notably overseeing the sale of IDRx to GSK for up to $1.15 billion. Concurrently, Guggenheim has upgraded Jade Biosciences’ stock rating to Buy, citing the company’s transformation post-merger and the promising potential of its drug candidate, JADE-101. Stifel also initiated coverage with a Buy rating, expressing optimism about Jade’s lead candidate, JADE-001, which is expected to enter clinical trials in the second half of 2025. TD Cowen followed suit, highlighting JADE-001’s significant potency and potential as a leading treatment for IgA nephropathy, a kidney disease. Additionally, Aerovate Therapeutics approved a 1-for-35 reverse stock split in preparation for its merger with Jade Biosciences. This strategic move is set to reduce Aerovate’s outstanding shares significantly, aligning with the merger’s completion. These developments position Jade Biosciences for potential growth in the biotechnology sector.

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